RNC Minerals engaged PCF Capital Group and Haywood Securities to run a strategic-alternatives process for its Beta Hunt gold project in Western Australia while it moves to focus on its Dumont nickel-cobalt project in Quebec.
The company said March 22 that Beta Hunt is considered noncore, as the positive outlook for nickel and cobalt, driven by growing demand from electric vehicles, bolstered the potential of Dumont to be a large multiple of the value of Beta Hunt. RNC President and CEO Mark Selby said, "[N]ow is the time to aggressively advance Dumont towards making a decision to begin construction in 2019."
Strategic alternatives for Beta Hunt may include the sale of all or a portion of RNC's interest in the project, though the company said there are no guarantees that the process will yield a transaction.
Beta Hunt's measured and indicated mineral resource as of Feb. 1, 2016, stood at 379,000 tonnes at 4.2% nickel for 15,840 tonnes of contained metal and 815,000 tonnes at 3.5 g/t of gold for 92,000 ounces of gold. Inferred resources are estimated at 216,000 tonnes at 3.4% nickel for 7,400 tonnes of contained metal and 2.9 million tonnes at 3.4 g/t of gold for 321,000 ounces of gold.